When Gordon told Hanson that he was considering selling his house, Hanson offered to buy it. Gordon and Hanson entered into a contract in which Hanson paid Gordon $1,000 in cash for the right to buy Gordon's house for $150,000 in the event Gordon

decided to sell it. Two weeks later, Jones offered Gordon $200,000 for his house, and Gordon agreed to sell it to her for that amount. Hanson sued Gordon to force Gordon to sell the house to him for $150,000, rather than to Jones for $200,000. Identify the probable result of the action. What type of contract, if any, was entered into between Gordon and Hanson?


Judgment would be for Hanson. Gordon and Hanson entered into a first-refusal contract providing that if Gordon decided to sell his house to anyone, Hanson would have an option to buy it for $150,000. Hanson's right to buy the house arose at the time Gordon decided to sell his house to Jones. Gordon breached his contract with Hanson by not offering to sell Hanson the house and instead entering into an agreement with Jones.

Business

You might also like to view...

A debit or credit memo describing entries in the company's bank account may be enclosed with the bank statement. An example of a credit memo is

A) deposited checks returned for insufficient funds B) a promissory note left for collection C) a service charge D) notification that a customer's check for $375 was recorded by the company as $735 on the deposit ticket

Business

Video kiosks are especially suited for items such as gift certificates or tickets (for concerts, airlines, and movies)

Indicate whether the statement is true or false

Business

One reason that some organizations prefer to hire older workers is that

A. they have proven employment experience. B. they learn faster. C. they are more willing to relocate. D. they do not require medical benefits.

Business

The following is an example of:?Amount%Cash$ 300,0006Accounts receivable500,00010Inventory800,00016Long-term assets  3,400,000  68Total assets$ 5,000,000100

A. Both vertical and horizontal analysis. B. Diagonal analysis. C. Vertical analysis. D. Horizontal analysis.

Business